Infrastructure Leasing & Financial Services (IL&FS) said the “estimated debt resolution as on date” was Rs 55,612 crore, and another Rs 1,331 crore of debt was fully serviced by its green entities, which are profitable.
Further, “the entities in Respondent No. 1 (IL&FS) have reduced from 302 to 101”, including 88 domestic entities and 13 offshore entities, said the affidavit filed by its Managing Director Nandakishore,
IL&FS, which defaulted on its loan repayments for the first time in September 2018, had to pay over Rs 90,000 crore to its lenders at that time. Its earlier affidavit was filed by the new board, which was headed by rise box In February this year, the IL&FS group had said it would resolve debt of Rs 55,000 crore by March 2022.
The new board of IL&FS introduced various measures for the pair loans, which included asset monetization, debt restructuring, cost optimization and liquidity management.
It is also focused on several resolution initiatives including expediting debt recovery and investments by IL&FS group companies. The amount will be used to settle the claims of creditors as per the revised distribution structure.
“This has resulted in an accumulated cash balance (in various entities in the IL&FS group) of approximately Rs 19,699 crore (as on September 30, 2022),” the 226-page affidavit said.
The NCLAT had on March 12, 2020 approved a distribution framework based on “pro-rata distribution” among the creditors of IL&FS Group from the sale proceeds, as suggested by the government.
Uday Kotak, Managing Director & CEO Kotak Mahindra BankHe was appointed by the government to help bail out the crisis-hit IL&FS.
The government had extended Uday Kotak’s term as chairman of IL&FS by six months in September 2021, which ends on April 2, 2022.
Later, CS Rajan was made the non-executive chairman of IL&FS.
As per the roadmap of IL&FS, its group companies have been classified into three categories – Green, Amber and Red based on their respective financial status.
Under the green category are those companies which continue to meet their payment obligations.
The amber category is for companies that will not be able to meet their obligations but can only meet operational payment obligations to senior secured financial creditors.
Amber category entities are “allowed to make payments only necessary to maintain and protect the going concern”.
As per the scheme, “companies falling in the red category are entities that cannot meet their payment obligations towards senior secured financial creditors.”